The average inventory.

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Answer 1

Question

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

b)

Summary Introduction

To determine: The number of orders placed each year.

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

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Question content area Part 1 Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) Part 2 Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked SKU's percentage of dollar usage. (Enter your responses rounded to two decimal places.)

Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand 70 bags/week > Order cost $58.00/order > Annual holding cost 30 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 70 bags is incorrect and actual demand averages only 45 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)

a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $enter your response here. (Enter your response as a whole number.) b. The aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is shown below. c. How would your analysis change if average weekly demand increased to 160 units per week? The aggregate inventory values are shown below.

Answer 2

Question

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

b)

Summary Introduction

To determine: The number of orders placed each year.

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

b)

Summary Introduction

To determine: The number of orders placed each year.

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

b)

Summary Introduction

To determine: The number of orders placed each year.

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

b)

Summary Introduction

To determine: The number of orders placed each year.

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

Answer 6

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

Answer 7

Chapter 12, Problem 4PA

a)

Summary Introduction

To determine: The average inventory.

Answer 8

b)

Summary Introduction

To determine: The number of orders placed each year.

Answer 9

b)

Summary Introduction

To determine: The number of orders placed each year.

Answer 10

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

Answer 11

c)

Summary Introduction

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

Answer 12

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

Answer 13

d)

Summary Introduction

To determine: The annual ordering and annual holding costs.

Answer 14

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

Answer 15

e)

Summary Introduction

To determine: The annual ordering and annual holding costs.

Answer 16

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

Answer 17

f)

Summary Introduction

To determine: The sum of annual ordering and holding costs.

Answer 18

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

Answer 19

g)

Summary Introduction

To determine: The sum of annual ordering and holding costs while accepting the discount.

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

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Answer 23

Ch. 12 - Which of the following is NOT an assumption of the...Ch. 12 - Prob. 2CQ Ch. 12 - Prob. 3CQ Ch. 12 - If the order quantity doubles but the flow rate...Ch. 12 - Prob. 5CQ Ch. 12 - Prob. 6CQ Ch. 12 - Prob. 7CQ Ch. 12 - Prob. 8CQ Ch. 12 - Prob. 9CQ Ch. 12 - Prob. 1PA

The average inventory.

Solution Summary: The author calculates the average inventory, which is 4,500 kg, and the number of orders placed each year.

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To determine: The average inventory.

To determine: The number of orders placed each year.

To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.

To determine: The annual ordering and annual holding costs.

To determine: The annual ordering and annual holding costs.

To determine: The sum of annual ordering and holding costs.

To determine: The sum of annual ordering and holding costs while accepting the discount.

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Chapter 12 Solutions